Timings of Basel 3.1 implementation in the UK

Following the launch of a consultation (CP) 16/22 regarding the implementation of remaining Basel 3.1 standards in the UK in November 2022 (please see EventID 18774 for more information), the Prudential Regulation Authority (PRA) has now released a statement providing an update on this matter. Specifically, the Authority is still reviewing the feedback of respondents which is one reason why it has decided to modify its planned implementation timeline as follows:
(1) The implementation date for the final Basel 3.1 standards will be moved by six months to July 1, 2025 (originally proposed was January 1, 2025). The transitional period will subsequently be shortened to 4.5 years to ensure full implementation by January 1, 2030, as proposed in CP16/22.
(2) To ensure thorough consideration of feedback on credit risk and output floor proposals in CP16/22 without delaying other rule publications, the PRA will split the release of its near-final Basel 3.1 policy statements into two parts:
– In Q4 2023, it will publish near-final policies on market risk, credit valuation adjustment risk, counterparty credit risk, and operational risk.
– In Q2 2024, it will publish near-final policies on credit risk, the output floor, and reporting and disclosure requirements.